Macroeconomic Update: Nepal (February 2014)

This edition of Macroeconomic Update forecasts FY2014 GDP growth and inflation to be at 4.5% and 10.0%, respectively. It also includes a section on export competitiveness and addressing domestic supply-side constraints.

The progress in capital spending has been slow and revenue performance is less than expected till mid-January 2014. High inflows of remittances have buoyed external sector stability, with large current account and balance of payments surpluses.

In Issue Focus, it explores the various dimensions of Nepal's export competitiveness and stresses the need to adequately address the crippling domestic supply-side constraints to boost exports. Among these constraints include lack of adequate and quality infrastructure, political instability and strikes, recurring labor disputes, lack of skilled human resources, deficient research and development, and policy inconsistencies and implementation paralysis.

Background

Produced by ADB's Nepal Resident Mission, Macroeconomic Update is published twice a year. It reviews and analyzes mid-year updates on real, fiscal, monetary, and external sectors.

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